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USER MANUAL
1. Divergences;
2. Potential support and Resistance levels;
3. Spotting calculations on turning points(Spike detectors).
1. Divergence
What is Divergence?
Divergence is when the price of an asset is moving in the opposite direction of a
technical indicator, such as an oscillator, or is moving contrary to other data.
Divergence warns that the current price trend may be weakening, and in some
cases may lead to the price changing direction.
CASE1:
The Indicator is moving from negative side to positive(Pushing up);
Conclusion:
This is the perfect scenario of what we call divergence and we likely to see a
potential push up in price.
2. Potential support and Resistance levels.
The concepts of trading level support and resistance are undoubtedly two of the
most highly discussed attributes of technical analysis. Part of analyzing chart
patterns, these terms are used by traders to refer to price levels on charts that
tend to act as barriers, preventing the price of an asset from getting pushed in a
certain direction.
A support level is a level where the price tends to find support as it falls due to
an increase in demand for the asset. This means that the price is more likely to
"bounce" off this level rather than break through it. However, once the price has
breached this level, by an amount exceeding some noise, it is likely to continue
falling until meeting another support level.
A resistance level is the opposite of a support level. It is where the price tends
to find resistance as it rises due to an increase in selling interest. Again, this
means that the price is more likely to "bounce" off this level rather than break
through it. However, once the price has breached this level, by an amount
exceeding some noise, it is likely to continue rising until meeting another
resistance level.
Conclusion:
The signals generated on the SR zones are much more efficient and chances are 90% of spiking.
3. Spotting calculations on turning points(Spike detectors).
The Turning Point Indicator shows you when buyers or sellers are having a hard
time moving higher or moving lower. It can be a very helpful tool for potential
trade entry and exit...as long as you're using it with market context on your side.
Example
Conclusion:
The spike detector are efficient when used in combination with extra confluences covered previously
PUTTING ALL TOGETHER
We had all the concepts before the spike. And 10 seconds later.
Result